Tax Laws Amendment (2004 Measures No. 1) Act 2004 (95 of 2004)

Schedule 9   Deductions for dividends on-paid to non-resident owners

Income Tax Assessment Act 1936

3   Subsection 46FA(5)

Repeal the subsection, substitute:

Unfranked amount of flow-on dividend unfrankable

(5) Part 3-6 of the Income Tax Assessment Act 1997 (the imputation system) applies to the unfranked amount of the flow-on dividend as if it were an unfrankable distribution within the meaning of section 202-45 of that Act if a deduction is allowed to the resident company in relation to the flow-on dividend.